Ontario Construction News staff writer
Prime Minister Mark Carney has asked provincial governments to allow American companies to compete for provincial contracts and lift restrictions on U.S. alcohol sales as Canada and the United States move toward a new trade agreement, according to Nova Scotia Premier Tim Houston.
Houston told reporters that Carney made the request during discussions with premiers on Wednesday, after U.S. President Donald Trump said Tuesday night that he had granted Canada a three-day pause on additional tariffs while officials finalized details of a proposed agreement. He told reporters in Washington that the pause was granted at Canada’s request. He also spoke about the potential revival of the Keystone XL pipeline project as part of the discussions.
Provinces imposed restrictions on U.S. liquor sales and other retaliatory measures after Trump imposed tariffs on Canadian goods, including steel, aluminum and automobiles.
Houston said the emerging agreement appeared to be “the best outcome Canada could achieve.”
Details have not been publicly released, and Canadian officials have declined to confirm reports about proposed tariff rates while the legal text is being finalized.
Meanwhile, Bloomberg and The Wall Street Journal, citing U.S. sources, reported that the proposed agreement would reduce U.S. tariffs on steel and aluminum from 50 per cent to 25 per cent. The Wall Street Journal also reported that tariffs on automobiles could be reduced from 25 per cent to 15 per cent.
The proposed agreement is also expected to prevent additional U.S. tariffs that Trump threatened under Section 338 of U.S. trade law. Those tariffs were scheduled to take effect Saturday if an agreement was not reached.
Conservative Leader Pierre Poilievre said Canada should seek the elimination of U.S. tariffs on steel, aluminum, automobiles and lumber, as well as an exemption from U.S. “Buy American” procurement policies.
Saskatchewan Premier Scott Moe also spoke publicly on Wednesday.
“Any reduction in those sectoral tariffs or any potential reductions in those sectoral tariffs is going to provide certainty and what would hopefully be somewhat of a more competitive environment than we currently have today,” Moe said.
Trump’s trade ambassador, Jamieson Greer, says Canada agreed to make concessions on issues previously identified by Washington, including provincial restrictions on U.S. alcohol and Canadian counter-tariffs on American automobile imports.
In a post on X, Carney said Canada was moving toward an agreement intended to preserve Canada’s trade advantages and provide greater certainty about the future trading relationship.
“We are now moving towards an agreement that reinforces that Canadian advantage, including by securing the best terms in each of Canada’s most important strategic sectors and providing greater certainty about our future trading relationship,” Carney wrote.
